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However, Saudi Arabia’s energy minister said the government would go ahead with the flotation, although he gave no indication of the timeframe.

“The government remains committed to the IPO [initial public offering] of Saudi Aramco at a time of its own choosing when conditions are optimum,” said Khalid al-Falih, who is also chairman of Saudi Aramco.

He added: “This timing will depend on multiple factors, including favourable market conditions, and a downstream acquisition, which the company will pursue in the next few months, as directed by its board of directors.”

An unnamed Saudi source familiar with the IPO plans had earlier told Reuters that the flotation would be cancelled.

“The decision to call off the IPO was taken some time ago but no one can disclose this, so statements are gradually going that way – first delay, then calling off,” the source said.

London is among several major financial centres hoping to host the potential Aramco flotation, including New York and Hong Kong. The City regulator changed its listing rules earlier this year in a controversial move that was widely seen as a bid to boost London’s chances of attracting the float.

Doubts have been cast over the potential valuation of the company. When Crown Prince Mohammed bin Salman first announced in 2016 plans to sell 5% of Aramco through a dual listing on the Saudi stock market and an international exchange, Saudi officials predicted the sale could value the whole company at about $2tn (£1.5tn).

However, some industry experts have questioned whether such a high valuation is realistic and it is thought a lack of agreement on a valuation has made it difficult for advisers working on the IPO plans.

It is not the first time Saudi Arabia has dismissed reports that it is considering shelving plans for the Aramco floatation. In October 2017, the company said the IPO was still on track for 2018, responding to concerns about the feasibility of such a huge international listing.

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In his latest statement on Thursday, the energy minister gave no details on the timing of the long-anticipated IPO but said the government and the company had taken a number of steps to prepare for the listing.

“This is all positive progress on what is a complex process, preparing the company and the kingdom for what will ultimately be a global landmark market offering of unprecedented quality and scale,” he said.

The IPO of Saudi Aramco is considered a crucial part of Saudi Arabia’s economic transformation plan – Vision 2030 – involving a lesser dependency on oil.